Apart from the outburst of Covid 19, the other reasons that led to China’s slowdown in growth can be explained in the given points:
Economic weakness in U.S. & Europe
China has been dependent on exports for its growth, but exports have fallen drastically in April. The main reason for the fall in exports is the recession in European countries & the slow recovery. It is hard for the Chinese to sell their products to Europeans as they have no money to spend.
A fall in domestic demand
China’s imports in April increased by 0.3% from the previous month. This is the lowest figure since the global economy is in the financial crisis of 2009. This data indicates that Chinese businesses “appeared to lose much of their need for products as varied as iron ore & computer chips”.
Housing & Banking are a mess
China’s housing market has become a real estate bubble. Besides this, the country’s bad banking sector has inflated the bubble & it can collapse anytime soon.
Corrupt political system
Many of China’s economic problems are due to corrupt politics. Economists are encouraging the government to open up the economy with private investment & currency reforms, but such changes could be disastrous for the economy.